07 October 2008

Industry needs to ââ¬Ëœover prepareââ¬â¢ for trading year ahead

ABTA Travel Convention Comment by Simon Powell, CEO Comtec Group

The global economic crisis has emerged from its final hiding place and there is no doubt that we are on the brink of a financial downturn the size of which the current generation is yet to face.

Is Joe Public ready for the impact this will have on their day to day spending?  My feeling is not.  

I sense we are facing a ââ¬Åâœreality lagââ¬~ which may leave consumers emerging from the winter months worse off than they had expected or allowed for.

From an industry point of view this could translate into a significant drop in the traditional January and February holiday sales rush and, critically, a fall in late bookings in April, May and June as consumers seek to save in any way they can. 

This will be compounded by the squeeze on borrowing, especially on credit cards as - for holiday makers - hard cold cash is a last resort.

The industry needs to prepare - over prepare - for the trading year ahead and seek to make the most out of every single booking. 

Already we are seeing capacities cut and staffing levels examined across the industry.  However, in my view more can be done. 

Tour operators and travel agents alike must better automate their businesses to drive efficiencies and maximise profit. 

Can front office booking tools create more sales and/or more from each sale? Can systems be streamlined to increase margins? Can previous laborious tasks be simplified by better use of technology?

The answer to all of the above is yes, and this is where choosing a technology partner is not only key, but vital in todayââ¬â¢s economic climate.

We have never had a fuller order book or fatter pipeline ââ¬' both in the UK and globally. 

The feedback we get from customers (current and potential) is clear. Travel businesses need to seek better distribution in order to reach old and new customers alike. They also need to drive better efficiencies in the front and back office. 

Only by following this path will travel businesses be able to get the best margin out of every sale. 

There is no doubt, as in every economic cycle, there will be winners and losers amongst us. 

My message is fortune favours the technologically brave. Invest now in the right system for your business, train your staff to use it to its fullest potential, and you will be stood in good stead for the months ahead.

 

 

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